Protocol Mechanics

This section covers the internal rules, safety mechanisms, and economic incentives that govern THORChain’s behavior. These concepts are essential for understanding how the network balances security, performance, and user outcomes.

Incentive Pendulum

Explains how rewards are dynamically split between node operators and liquidity providers to maintain optimal network balance.

Network Halts

Covers the conditions under which THORChain will automatically or manually halt trading for safety or liveness guarantees.

Fees

Explains the various fees in the protocol — liquidity fees, outbound fees, affiliate fees, and how they are calculated.

Delays

Describes the scheduling logic and timing considerations that affect outbound transactions and security buffering.